Do you think Tesla stock will boom soon and make new history in the stock market? Over the last twelve months, a lot has happened with Tesla and its position in the stock market. Currently trading at 122.40 dollars, Tesla CEO Elon Musk is still confident that the stock will soon spike up the bloom.
Before and after Musk completed the deal that would make him the new owner of Twitter in October 2022, investors and experts have tabled their concerns about the billionaire CEO’s move. According to them, Elon Musk is spending most of his time in the process of acquiring social media, which is stealing his focus on Tesla.
“If you think you’re interested in developing one of the most advanced technologies in the world that are really going to affect the world in a positive way, Tesla is the place to be.” These were Musk’s words on Tesla’s second AI day held in September last year.
However, investors believe that this could be achieved if Musk is present to lead the Tesla team moving forward. With much of his attention turned towards Twitter after he bought the social media, investors are skeptical and dissatisfied at Musk’s distraction, and the impact remains significant on Tesla stock as it continues to plummet.
According to them, Musk should stop wasting time on social media and get back to solving the rising challenges in Tesla.
Some other investors have been forced to sell off their shares as Elon Musk continues to tweet about politics and memes on his Twitter page. While Investors are urging him to keep his focus back on Tesla and how the company could break through its obstacles, it appears like he turned a deaf ear to their calls.
This changed a little starting on December 8 when Musk was seen posting his tweets to answer investors’ questions on the state of demand for Tesla cars in China.
Some days later, he also explained Tesla’s stock decline, where he tweeted that macro conditions are difficult. In response to the pressing concern of investors that think he is paying less attention to Tesla because of his social media, Musk also gave out his thoughts. “I continue to oversee Tesla and SpaceX, but the team there are so good that often, little is needed from me”, he tweeted.
Investors are delighted and see his tweet on Tesla as a significant change even though he tweeted more about Twitter that day than he did on Tesla.
Tesla’s 2022 third-quarter financial report fell short of expectations with regard to revenue. Even though it exceeds earning expectations, analysts and investors are skeptical about the company’s strength. This is because the EV automaker has been having a tough time in the stock market, and the Q3 earnings report doesn’t seem to help the situation.
Elon Musk says that Tesla Stock Will Boom
In the company’s third-quarter earnings call soon after the financial report, the CEO, Elon Musk, has to keep investors confident in Tesla’s potential.
Driving home his point, Musk began by announcing the Tesla board’s discussion on the demand of investors for a share buyback. He stated their agreement that a five to ten-billion-dollar buyback would be reasonable.
This act depicts that a company believes its shares are undervalued and wants to boost the share price. While expressing confidence, he made it clear that the process has not been concluded, but the possibility of a buyback is close to taking effect very soon.
Musk, in the same conference, asserted his thoughts on the future evaluation of Tesla. First, he recalled his previous thoughts about the feat the EV company could reach. “A while ago, I said on an earnings call that I thought it was possible for Tesla to be worth more than Apple, which was worth about 700 billion dollars at the time”.
Apparently, that came true with Tesla now the market cap currently rounding up around the said valuation. Based on that, he projected his new forecast. “Now I am of the opinion that we can far exceed Apple’s current market cap. I see a path for Tesla to be worth more than Apple and Saudi Aramco combined.”
However, he doesn’t seem unfazed by the huge market cap of these two companies. With Apple and Aramco worth 2.3 trillion and two trillion dollars, respectively, Elon Musk agrees that it requires lots of hard work, great execution, and a mix of luck to reach that level of market capitalization.
Musk promised that Tesla stock will boom would soon be possible, with Tesla cars counting on the latest driving assistance that facilitates the vehicles making autonomous maneuvers independent of the driver.
The cyber truck, which is highly anticipated by fans and customers, is also expected to enter the market by the end of the first half of 2023.
With that said, there are still other steps and plans in front of Tesla to break through the challenges and obstacles it’s facing and its share value in the stock market.
Tesla has ramped up production in all of its Gigafactory, which explains why its revenue has surged significantly. Musk was also seen to express the possibility of building ten or more Gigafactory to meet Tesla’s goals to manufacture twenty million cars annually by 2030.
He continued that the electric automobile company might announce locations for new Giga factories. “Ultimately, we’ll end up the building I don’t know, probably, at least, ten or twelve giga factories”, he stated at Tesla’s annual shareholders’ meeting.
This approach of huge production capacity, according to Musk, will serve as one of Tesla’s competitive advantages over its competition that will help them dominate the growing EV market.
Tesla’s price evaluation doesn’t make sense, but Tesla and Elon Musk fans keep believing in his strength and ability to turn things around. Despite all the challenges facing the EV automaker, analysts and investors remain strong on the long-term performance of Tesla through increased production and the revealing of new innovations that it has promised.
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